Day Trading Guide: A stock pick for Monday

The Nifty ended near its 50-day EMA. The EMA levels acted as a hurdle zone during the start of December. Follow-up action needs to be closely watched out as sustenance above 17,300 is essential to gain further positive traction. Any throwback below 17,300 could lead Nifty to consolidate to digest recent gains.

Bank Nifty continued its overall under-performance, down for the consecutive month. On Friday, Bank Nifty filled its downward gap at 35,535 which it formed on December 20. Mixed activity is possible within the banking stocks.

After losing 15% from the record high, FMCG index is bouncing off its yearly mean support. Sustenance is likely to attract positive momentum in selected FMCG stocks.

Recommendation

Godrej Consumer Product | Buy | Near Rs 960

Stop loss: Rs938

Target: Rs 1,005

After multi-month decline, swift reversal in the prior week indicates that the stock is due for mean reversion.

( The author is Amit Trivedi, CMT, Technical Analyst - Institutional Equities, YES SECURITIES)